Brazilian pellet producer Samarco, a 50/50 JV between BHP Billiton and Vale, is said to have hired banks to help renegotiate a $3.8 billion debt with creditors, market sources told media.
Samarco, which initially expected a Q4 restart for its operations, is now foreseeing a 2017 restart, as it could take longer than expected for the company to receive the needed licenses in order to operate, following increased scrutiny by Brazilian regulators.
Media sources said co-owner BHP Billiton hired Rothschild & Co as an advisor to help Samarco renegotiate its debts, at the same time Vale hired Moelis & Co, and JPMorgan Chase & Co to advise the struggling pellet producer.